After the median super fund posted a growth of 0.9 per cent in the month of August, growth is set to end in September as investors are becoming “increasingly nervous” about a Chinese slowdown.
“September is shaping up to be a poor month for funds, with losses so far experienced across both Australian and international equities,” the statement said.
“As at close of business Tuesday 23 September 2014, the benchmark S&P/ASX 200 Index has recorded a -3.7 per cent decline in September, effectively wiping out all gains since the start of the financial year as investors become increasingly nervous about a Chinese slowdown,” it said.
SuperRatings said the sharp fall in the Australian dollar has resulted in a positive return on super funds' international assets but the group still anticipates a decline in the growth of the median super fund.
“[The fall in the Australian dollar] makes assets denominated in foreign currencies more valuable in domestic dollar terms,” a statement from SuperRatings said.
“Overall, SuperRatings estimates that the median fund has so far experienced a -0.8 per cent decline thus far for the month of September,” it said.
SuperRatings attributed the growth that super funds experienced in the month of August to international shares “rebounding strongly from July’s slight decline”.
“The performance of the US equity market was the key driver of this result, with the benchmark S&P500 rising 3.8 per cent in August, while European and Asian equity markets were mixed,” a statement from SuperRatings said.
